Many companies are trying to cut costs as a recession looms and the economy continues to weaken. Many organizations are paying more for cloud technologies than they did two years ago because of software.
The desire to keep up with the Joneses can come at a significant cost if you over invest in best-in-class technologies. Hundreds of software contracts, mixing and matching apps, platforms and an endless array of vendors are currently carried by companies.
Some of that spending isn't necessary. Our internal data shows that companies are overspending on their software by over 30%.
The challenge is that most companies don't have the right purchasing infrastructure in place They are essentially in the middle of a procurement process.
The question is not whether there is waste or inefficiency, but rather how much.
They don't know how much they should be paying for each tool or what tools they really need, let alone if they're actually using what they purchased, where they're storing the original contracts, or documenting when contracts are up for renewal. This approach leads to a lot of inefficiency and overspending.
How can you regain control of the process to make sure you make the right decisions? Do you know the three important questions?
Every company should be auditing its technology. There will be no exceptions. It is important to have a clear picture of the bloat that most companies suffer from.
Determine the number of tools and software platforms your company has and how much you paid for them. You should know where the original contracts are and when they will be renewed. If you want to find out if you have a single source of truth, you need to look at whether your contracts and associated data are stored and accessible from one place.
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